In line with its 4PL expansion
strategy, Ziegler ZA is set to
treble its warehousing capacity
when it moves to new premises
in Spartan later this year.
Renovations are currently under
way and when complete the facility
will have all
the bells and
whistles – from
full hazchem
compliance
to highly
sophisticated
security systems
and a larger bond
store.
“We have very
strong global 4PL
systems and this
development is
in line with the focus of our parent
company,” chief operations officer
Paul Lawrence told FTW.
Several global customers – largely
in the energy sector – have already
come on board and reserved
dedicated space in the facility, with
another pending, said Lawrence.
“It’s one of the positive outcomes of
South Africa’s energy crisis. We’ll be
doing the warehousing, distribution
and importing for a large producer
of generators, and the same for a
company that specialises in solar
energy.”
Ziegler recorded some growth
last year and the company is upbeat
about future
growth on
the back of its
warehousing
development
and the positive
benefits flowing
from its recent
BBBEE deal.
Earlier
this year the
European
company sold
a share of its
South African business to a blackowned
consortium headed up by
BHP Billiton executive chairman Dr
Xolani Mkhwanazi.
The move has elevated the
company to level 3 BBBEE status,
which has opened new doors,
according to Lawrence.
“We’re now able to secure
business from which we were
excluded in the past. We’re also
looking at participating in the
empowered black property
ownership element of the new
BEE codes.”
However a major challenge
at present, says Lawrence,
is the unsustainable level of
rates.
“People are importing
less because of the weak rand
and our manufacturing is not
up to speed – which means there’s
little benefit from the weak rand
for exporters. Shippers are less
inclined to use airfreight because
of the cost and seafreight rates are
under pressure. When you’re doing
RFQs (request for quotation), it’s
often more about rates than value
add – which is not sustainable for
the industry in the long-term.”
The company’s expansion plans
are focused on opportunities in
Africa where border presence is
high on the agenda. “We’re now
well established at Beitbridge
and are busy with options for
Groblersbrug and Komatipoort.”
INSERT & CAPTION
We have very strong global
4PL systems and this
development is in line with
the focus of our parent
company.
– Paul Lawrence
